The forex industry is made up of countless definitions and it’s easy to forget a few along the way. But because no forex education can be complete without a glossary of forex terms, we’ve compiled one which aims at explaining key definitions in the simplest way possible.
- Value Date keyboard_arrow_down
- The date on which counterparts to a financial transaction agree to settle their respective obligations, i.e., exchanging payments. For spot currency transactions, the value date is normally two business days forward. Also known as maturity date.
- Variation Margin keyboard_arrow_down
- Funds a broker must request from the client to have the required margin deposited. The term usually refers to additional funds that must be deposited as a result of unfavorable price movements.
- VIX or Volatility Index keyboard_arrow_down
- Shows the market’s expectation of 30 – day volatility. It is constructed using the implied volatilities of a wide range of S&P 500 index options. The VIX is a widely used measure of market risk and is often referred to as the “investor fear gauge”.